Arthur Enters into a Written Contract with James That Requires

question 5

Multiple Choice

Arthur enters into a written contract with James that requires James to sell Arthur's farm. Arthur then hires Katherine to sell his farm without terminating the contract with James. Which of the following statements is true of this scenario?

• A) James can sue Arthur for monetary damages only if their contract was an exclusive agency contract.
• B) James can sue Arthur for breach of contract on the grounds of duty of cooperation and ask for specific performance.
• C) Arthur has the authority to enter into a contract with Katherine without terminating the contract with James.
• D) If James has not completed the duties assigned to him in the contract, Arthur need not compensate James for his services.

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Definitions:

Commodity X

A placeholder term for any generic, interchangeable good or service in economic analysis.

Demand Equation

A mathematical expression that relates the quantity demanded of a good to its price and other factors influencing demand, typically in the form of Qd = f(P, ...), where Qd is quantity demanded, P is price, and ... represents other determinants.

Equilibrium Quantity

The quantity of goods or services supplied is equal to the quantity demanded at the market equilibrium price.

Commodity X

A placeholder term typically used to represent any generic good or service in economic models and discussions.